Can I consolidate mortgages on 2 homes into one loan to my benefit?

Question

I have two mortagages from two lenders on two houses. Is it possible to consolidate and have one loan from one bank covering the two homes? What sort of benefit or disadvantage would this entail?

Answer 1

I'm sure its possible at some banks though most would not want to do it. Right now its very possible to get some sort of umbrella loan (usually you do this with lots of properties you want to bundle together). Still, to do this banks would hate it (just easier for them to keep each property seperate) and what if you decide to sell one house down the road but keep the other. You couldn't do that without refinancing again.

Also I can't think of any advantage beyond a tiny savings in cost to get the loan (only one closing needed for example) - but this would actually be a cost for you since you already have mortgages on both properrties.

So, its just a bad idea. Won't help any and causes all sorts of hassles. You could, instead simple have the bank write you two seperate loans for both properties at the same time if you wanted (assuming you are planning to refi them both now). They'd be much happier to do this.

Answer 2

I don't recommend it.

If you do this, you want to have a provision in the mortgage which is common enough for a developer of a neighborhood, but unusual for your situation, where you can get a "partial release" should you sell one of the two. Without that, you would have to pay off the entire loan to sell one of them. I think you'll have a hard time getting their residential loan officers to understand it, and their commercial people won't talk to you since one or both are residences.

I doubt there's any real benefit to be had.

Answer 3

Yes you can. There are loans out there to do that as I have done it in the past with three pieces of property. However when you want to sell one piece it is more difficult to release the liens, but not impossible. I did that as well.

Answer 4

You can't do this in the US, even if the parcels are right next to each other. It doens't have anything to do with banks, but the county taxes. The records have be to kept seperately. You can have them at the same bank though, I have several with Wells Fargo.

Answer 5

Not probable because each house has it's own legal description.

Answer 6

Maybe yeah

Answer 7

Can't be done. Each mortgage has its own collateral.

Answer 8

It depends..